NCBA Leasing LLP has signed a deal to lease 250 vehicles valued at Ksh. 1.2 billion to the Kenya Police.
In partnership with Toyota Kenya, NCBA Leasing has handed over the first 49 vehicles to the National police Service with the remaining units set to be delivered in the first quarter of 2022. This is the second time the leasing company is supplying vehicles to the Police services, the first being on 2018, when it supplied 108 vehicles to the national police service.
Under the leasing agreement, the government will pay lease rentals for the vehicles on a quarterly basis. Toyota Kenya will train prequalified garage owners across the counties on how to service and maintain the vehicles.
Commenting on the agreement, Lennox Mugambi, NCBA Group Director of Asset Finance and business solutions said, “As the home of asset financing, we are pleased to partner with Toyota Kenya to improve mobility of the police force across the country. This partnership will go a long way in improving security for all Kenyans. The government has massive plans to bolster infrastructure, security, health, and agriculture in the country. This presents a great potential for our fast-growing leasing business.”
Mr. Mugambi added that the bank plans to engage in more partnerships with government agencies, parastatals, and corporates to ensure efficiency in mobility.
The government has in recent years turned to vehicle leasing to boost the capacity of the police service and other government agencies. Leasing allows individuals and organizations to use a vehicle for a fixed period of time while paying lease rentals as the dealer takes care of its maintenance. Leasing also helps avoid the upfront large capital expenditure in buying the vehicles.
NCBA Bank is keen to offer partners with leasing support to foster economic development and job creation, by providing leasing options to MSMEs that often cannot access other forms of financing.